7-Eleven workers continue to be exploited

After speaking out about rampant underpayment and 60-hour working weeks, former 7-Eleven employee Bharat Khanna is helping other international students avoid exploitation, including one who has been allegedly paid as little as 48 cents an hour.

Mr Khanna said 7-Eleven workers were still being exploited despite being paid hourly rates of up to $25 on paper. After being paid the correct rate, they were then asked to hand back about $9 per hour in cash to their managers, leaving them underpaid at rates of $16 per hour.

More than 20 workers at 7-Eleven franchises in Northern Sydney, Newcastle and the Central Coast have told Mr Khanna they are still being asked to hand back cash to franchise owners.

"It's all done verbally because they don't want to keep any records," he said. "On paper everything is good. When people say no to handing back the cash, they no longer have a job. People are still not getting pay slips or proper breaks."

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Former 7-Eleven employee Bharat Khanna.Credit:Nick Moir

Mr Khanna, who began a full-time job with the Shop Distributive and Allied Employees' Association this week, is touring university campuses in Sydney and Newcastle to raise the awareness of overseas students about their rights at work.

The SDA, which represents retail, fast food and warehouse workers, has partnered with United Voice, the union for hospitality workers and cleaners, to this week launch a national campaign and 131732 hotline with free advice for overseas students about workplace entitlements.

"The students want a job whether it pays them $10 or $15 per hour, they are ready to take it," Mr Khanna said. "They convert it into their own currency and think it's a big amount. But they later realise their expenses are high compared to what they are earning."

Mr Khanna said he knew of international students who have failed expensive university subjects because they have kept working excessive hours for meagre salaries.

"My concern is that the exploitation is still happening and it's happening on a broader level. It's not just 7-Eleven who are doing it," he said.

"I would say the franchisee model is very bad in this country."

The SDA's national secretary Gerard Dwyer said the new Welcome to Work campaign would target international students at university orientation weeks around the country to support them in their study and work.

"Telling them that there is no other choice but to work long hours for little pay or else they will have their visas cancelled is completely immoral," Mr Dwyer said.

Mr Dwyer said a new amnesty for 7-Eleven workers appearing before a Senate inquiry into the exploitation of 7-Eleven workers should be extended to all international workers to prevent them from being deported for breaching their visa conditions by working more hours per week than permissable because their pay rates were so low.

Mr Dwyer said a key to the problem was head office taking a 50 to 56 per cent cut of a franchise owner's profits.

"This gives franchisees the incentive, some would say the imperative, to pay below legal wages," he said.

A spokesman for 7-Eleven said it was aware of the "repugnant" cash-back practice and was working to eradicate it.

He said the head office share of profit was on a sliding scale ranging from 50 per cent for the first $500,000 in profits, to 56 per cent for profits of more than $1 million.

"7-Eleven has done significant modelling on labour costs to determine the average minimum weekly cost of operating both fuel and non-fuel stores," he said.

"The 7-Eleven store agreement provides franchisees with a guaranteed yearly gross income of $310,000 for fuel stores and $340,000 for non-fuel stores. If a franchise is not making this amount, 7-Eleven will adjust monthly charge to cover this minimum gross income."

10 THINGS you need to know about working in Australia

1. If you're on a student visa, you are only allowed to work 40 hours per fortnight when your course is in session. During break periods you may work unlimited hours.

2. You should receive a pay slip listing your hours, wages, and any tax paid to the government – even if you get paid in cash.

3. You are entitled to a minimum wage.

4. You are entitled to extra money if you work nights, weekends or public holidays.

5. You must obtain a Tax File Number to be able to work.

6. Your employer cannot force you onto an individual contract.

7. You cannot work until you have commenced your course.

8. Your employer can't pay you in goods or services.

9. If you earn more than $450 per month your employer must pay superannuation.

Anna Patty is Workplace Editor for The Sydney Morning Herald. She is a former Education Editor, State Political Reporter and Health Reporter. Her reports on inequity in schools funding led to the Gonski reforms and won her national awards. Her coverage of health exposed unnecessary patient deaths at Campbelltown Hospital and led to judicial and parliamentary inquiries. At The Times of London, she exposed flaws in international medical trials.